New Delhi/Washington: Losing a job in the US could soon mean losing the time needed to find another one.

The Trump administration has proposed scrapping the 60-day grace period currently available to certain temporary foreign workers, including H-1B visa holders, after their employment ends.

The proposal, published by the US Department of Homeland Security (DHS) in the Federal Register on Thursday, would require H-1B holders and workers under several other temporary visa categories to leave the United States once their employment comes to an end.

The move could create fresh uncertainty for foreign professionals, particularly those working in the technology sector, where American companies have long depended on skilled workers from countries such as India and China.

The proposed rule is the latest in a series of measures by President Donald Trump's administration aimed at tightening legal migration after he returned to office in January 2025.

The administration has already introduced higher visa fees for skilled workers and recently paused immigrant visa appointments at US missions worldwide while rolling out a new training programme.

What does the proposed rule mean?

At present, eligible foreign workers who lose their jobs can use a 60-day grace period to look for another employer, secure a new sponsor or make arrangements to leave the US.

If the proposed rule takes effect, that window would disappear for H-1B and certain other temporary work visa holders. Their stay would effectively come to an end with their employment.

DHS has acknowledged that the change could cause some disruption for businesses.

However, the department argued that employers could fill the affected positions with American workers.

In certain circumstances, workers who leave the US could return later if a new employer files a fresh petition on their behalf.

DHS said it presumes employers would either offer the positions to equally qualified US workers or use the I-129 petition process based on their workforce requirements.

The proposal is not yet final. It is subject to a two-month public comment period before the administration can move towards implementing the change.

Why is the 60-day grace period important?

Introduced in 2017, the 60-day grace period was intended to give foreign workers a limited cushion after losing employment.

For an H-1B worker, those 60 days can be crucial: not just for finding another sponsor, but also for making practical arrangements to leave the country if a new job cannot be secured.

That can include selling a home, relocating belongings or withdrawing children from school before returning to their home country.

Removing that window would therefore turn what was previously a limited job-search period into a far more immediate immigration deadline.

Who could be affected?

H-1B workers are among those most directly exposed to the proposed change. The visa programme, established by Congress in 1990, allows US companies to employ skilled foreign professionals for positions where they may have difficulty finding qualified American workers.

Major H-1B sponsors include consultancy companies such as Deloitte, PwC and Ernst & Young, along with outsourcing giants including Tata Consultancy Services, Infosys, HCLTech and LTIMindtree.

The proposed change, however, would extend beyond H-1B workers.

Other temporary visa categories listed in the proposal include:

  1. E-1: International traders
  2. E-2: Commercial vehicle operators
  3. L-1: Executives and managers working for international companies
  4. O-1: People with 'extraordinary ability' in areas including science, sports and the arts
  5. TN: Professional workers
  6. H-1B1: Skilled workers from Singapore and Chile
  7. E-3: Specialty workers from Australia

The proposal comes amid broader scrutiny of employment-based immigration involving Indian-origin technology companies.

The US Department of Labour has recently suspended India-founded and US-listed technology company Cognizant's ability to apply for new green card sponsorship.

The department said 'threats to American workers' would not be tolerated.

For thousands of foreign professionals whose US employment is tied to their immigration status, the proposed removal of the 60-day cushion could therefore mark a significant shift:  replacing a period to regroup and search for work with a much tighter deadline to either secure a new petition or leave the country.